BEFORE THE DEBTS RECOVERY TRIBUNAL, ORISSA, CUTTACK.

Dairy No. of 2020

O. A. No. ______________ of 2020.
BETWEEN :
Union Bank of India, a statutory Body constituted under the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980,
carrying on business all over India having its head office at 239,
Vidhan Bhawan Marg, Bombay-21 and one of its branches amongst
other places, At-Purushottampur Branch, Main Road, Po/Ps-
Purushottampur, Dist-Ganjam, Pin-761018 represented by its Branch
Manager and the Power of Attorney holder of the same address as that
of the Branch, … Applicant.
Vrs.
1) M/s Bhagyalaxmi Feeds & Farms, through its Proprietor Smt
Bhagyalaxmi Biswal, aged about 26 years, D/o Mr.Surakhya
Biswal At- Hindula Bazar,Po-Raipur Via- Purushottampur, Dist-
Ganjam.Pin- 761018 , Mob- 7377217114
2) Smt Bhagyalaxmi Biswal, aged about 26 years, D/o Mr.Surakhya
Biswal At-Laiputt, Po-Raipur, Via-Purshottampur, Dis-Ganjam,
Pin- 761018 , Mob- 7377217114.
3) Gupteswar Patnaik, aged about 45 years, S/o Subodha Chandra
Pattnaik, permanent resident of Ramnagar 1 st Lane, Kamapalli,
Po-Berhampur, Ps-Baidyanathpur, Dist-Ganjam, Pin-760002,
Mob No.9439258623,

Defendant No.1 is the borrower.

Defendant No.2 is the borrower and mortgagor.
Defendant No.3 is the co-obligant and mortgagor
… Defendants.

DETAILS OF THE APPLICATION

1) PARTICULARS OF THE APPLICANT :
i) Name of the Applicant: Union Bank of India, At- Purushottampur
Branch, Main Road, Po/Ps-Purushottampur,
Dist-Ganjam, Pin-761018,
IFSC Code-
Mob-
Email-
ii)Address of the
 Head Office: Union Bank of India, At-239, Vidhan Bhawan
Marg, Bombay-21.

iii)Address for service

of notices: Union Bank of India, Purushottampur Branch,
Main Road, Po/Ps-Purushottampur, Dist-
Ganjam, and its Advocate Sri Narasingha
Patra, Shelter Chowk, Cuttack-8, Tel.
No.9437310634, 9348544066.

2. PARTICULARS OF THE DEFENDANTS :

i) Name and address of the
Defendants : As per cause title.
ii) Address for service of
notice : As per cause title.

3. JURISDICTION OF THE TRIBUNAL :

The applicant declares that the subject matter of recovery of the debt
due falls within the jurisdiction of this Tribunal.
3.A Details of Debts and Assets ;

(i).Total amount of debt Amount of debt, in

claimed as on the date Rs.30,69,979/- as on
to be specified. 31.01.20
(ii)Amount of debt, as Amount of secured debt, in Description
on specified date, Rs.30,69,979/- as on 31.01.20 of
secured by security property or
interest over properties Schedule-A property as per asset with its
or assets of the original application. location
defendant with securing the
particulars of secured debt.
properties and assets.

(iii)Estimated value of Description of Schedule-A Value,

properties or assets property. Market Value
over which security Rs.43,91,000/-
interest is created. Distressed
value
Rs.37,32,000/-
(iv)If estimated value is Description of property or Estimated
not adequate to cover asset with its location. value, in
the total debt claimed rupees.
with future interest N.A
particulars of any other
properties or assets
known to the applicant
with estimated value of
such other properties
 or assets
(v) Amount of Amount of unsecured debt, Portion of
unsecured debt or in rupees debt not
portion of debt not covered by
covered by estimated securities, in
value of secured rupees]
N.A
properties and other
properties.

4. LIMITATION :
The applicant further declares that the application is within the jurisdiction of
this Tribunal prescribed in Section 24 of the Recovery of Debts Due to Bank
and Financial Institutions Act, 1993.

5. FACTS OF THE CASE :

i) That the applicant Andhra Bank is a body corporate carrying on
business having its head office at Dr. Pattabhai Bhawan, Secretariat Road,
Saifabad, Hyderabad-500 004 and At- Purushottampur Branch, Main Road,
Purushottampur, Dist-Ganjam, Pin-761018 within the jurisdiction of this
Hon’ble Tribunal.

That Sri. Prabir Kumar Swain is the Branch Manager of the applicant
bank and is authorized to sign, verify the application before any court or
Tribunal and to do all necessary acts that may be found necessary on behalf
of the bank. That the applicant bank carries on business of banking such as
accepting deposits, lending and or advancing loans to various persons and
further carries such other activities as are permissible under the banking
Laws.

ii) That the defendant No.1 Proprietorship Firm is the borrower, the
defendant No.2 is the borrower and guarantor/mortgagor and defendant
No.3 is the co-obligant and mortgagor to the cash credit facility granted by
the applicant bank. That the defendant No.3 has mortgaged the schedule-A
property to the applicant bank. That all the defendants are jointly and
severally liable to pay the dues of the bank.

iii) That the defendants approached the approached the Bank earlier
known as Andhra Bank At- Purushottampur Branch, Main Road,
Purushottampur, Dist-Ganjam, Pin-761018 and filed an application
dt.11.04.17 for sanction of Open Cash Credit facility of Rs.30 Lakhs for the
business of Poultry feeds trading unit against the hypothecation of stock of
the business and co-lateral security of residential belonging, a vacant land,
situated at KHATA SL NO 389, PLOT NO 720, Nimakhandi Revenue Mouza,
Ps.Berhampur, Tahasil- Kukudakhandi, Dis-Ganjam. That the applicant bank
considering the aforesaid application of the defendants vide letter
dt.13.07.18 sanctioned OCC limit of Rs.29,00,000/- in their favour with
interest 10.65% against hypothecation of stocks and Book debts and
collateral security i.e equitable mortgage of residential belonging, a vacant
land ,situated at KHATA SL NO 389, PLOT NO 720, Nimakhandi Revenue
Mouza, Ps.Berhampur, Tahasil- Kukudakhandi, Dis-Ganjam belong to the
defendant No.3 with other terms and conditions enumerated in the said
sanction letter for their business. That the letter of Sanction dt. 13.7.18 was
acknowledged by all the defendants as token of the fact that the terms and
conditions of the Open Cash Credit limit was accepted to them. That the
defendants accepted the terms and conditions of the sanction letter dt.
13.7.18 and availed the Open Cash Credit facility and executed necessary
documents of the bank in its standard format as required by the bank. That
the Central Govt. after consultation with the Reserve Bank of India issued a
Notification dt.4.3.2020 in exercise of power conferred U/s 9 Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980 by
preparing a Scheme which is called the Amalgamation of Andhra Bank and
Corporation Bank into Union Bank of India Scheme, 2020 giving effect from
1.4.2020. The copy of the application of the defendants dt.11.04.17 and the
sanction letter dt. 13.7.18 are annexed as Annexures-1 and 2.

That the defendants executed demand promissory note vide RF 211

dt.15.04.17 for OCC limit of Rs.29,00,000/- together with interest @10.65%
per annum and the composite agreement dt.12.07.18 was executed between
the applicant bank and the defendants and loan was sanctioned accordingly.
That in the said agreement the borrowers authorized the applicant bank to
charge and debit the OCC account with interest of 10.65% p.a. ( MCLR 8.4 +
2.25=10.65%).The said The copy of said DPN RF 211 dt.15.04.17 and
composite agreement is annexed as Annextures-3 and 4.

iv) That the defendant No.3 as co-obligant/mortgagor guaranteed the

repayment of the cash credit facility of Rs.29 Lakhs availed by the
defendants along with interest and other charges by depositing the title deed
as per the schedule-A property on 12.7.18 for creation of equitable
mortgage in favour of the bank vide RF 255 dt.12.7.18, Registered Sale
Deed No.10611501942/15 dt.10.4.15, RF 256 dt.15.4.17 and RF 256
12.07.18. That on execution of necessary documents the defendants availed
the Cash Credit loan facility. The copy of the said documents vide RF 255
dt.12.7.18, Registered Sale Deed No.10611501942/15 dt.10.4.15, RF 256
dt.15.4.17 and RF 256 12.07.18. are annexed as Annexure-5 Series.

v) That the defendants availed the cash credit facility sanctioned by the
applicant bank and utilized the same but did not repay the dues of the bank
in-spite of repeated approaches and violated the terms and conditions of the
sanction letter. That the defendants did not pay the dues of the bank and
the account was classified as NPA on 28.10.19. That the Authorized Officer
of the bank issued the demand notice dt.02.11.19 u/s 13(2) of SRFAESI Act,
2002 to the defendant No.1 to 3 calling upon them to pay an outstanding
amount of Rs.29, 66,408/- as on 02.11.19 with subsequent interest as per
the agreement within 60 days from the date of the notice failing which the
bank will be constrained to take measures against the properties mortgaged
to the bank described in Schedule-A as provided under the SARFAESI Act.
That the defendants did not pay the dues of the bank nor submitted any
reply to the same. The copy of the notice dt. 02.11.19 is annexed as
Annexure-6.

vi) That the borrower failed to repay the outstanding amount within the
60 days limit provided in the said demand notice dt. 02.11.19. That from the
aforesaid facts it is clear that the defendants have violated the terms and
conditions of the sanction letters of the Bank.

vii) That the defendants availed OCC limit of Rs.29,00,000/- for their
business and embarked upon the business, but in breach of the agreed
terms and conditions defaulted in repayment dues to the applicant bank
along with monthly interest. That the defendants failed to discharge the
liabilities and violated the terms and conditions of the documents executed
by them which has been reflected in the statement of Account. The copy of
the statement account in respect of OCC account along with normal and
overdue interest is annexed as Annexure-7.

Viii) That on consideration of the execution of documents by the

defendants, the defendants availed the loans and the applicant bank
disbursed the OCC limit in their favour. That the defendants utilized the loan
in their business and violated the agreed terms and conditions and failed to
repay the loan dues with interest to the bank. Thus as on 31.01.20 the
liability of the defendants including normal and overdue interest is
Rs.30,69,979/- with regard to OCC Loan. Therefore the total liability of the
defendants is Rs.30,69,979/- which the defendants are liable to pay the
same.

ix) That in the meantime the loan documents in respect of the

transaction with the borrower was about to get barred by limitation and the
applicant bank is forced to file this original application to save limitation by
invoking its right against secured assets, unsecured assets and personal
remedies by filing this original application under the RDDBFI Act. That since
the defendants No.1 to 2 have executed the documents as per the bank’s
standard format the original application is filed to avoid the bar of limitation
and thereby protecting the interest of the applicant bank under common law.

x) That on failure of the defendants to regularize the account in breach

of commitment as per the statement of account, the bank was left with no
other option than to approach and present this original application for issue
of recovery certificate for an amount of Rs.30,69,979/- as on 31.01.20
which the defendants are liable to pay with P.I and F.I along with other costs
and charges and cost of this application from the defendants who are jointly
and severally liable to pay the same. That details of total liability of the
defendants for Rs.30,69,979/- as on 31.01.20.

xi) That the cause of action for this original application arose when the
defendants approached for loan, the loan was sanctioned, operation of the
loan accounts started, mortgaged the Schedule-A property on 12.07.18
when the defendants failed to repay the loan outstanding of the applicant
bank as per the notice dt.02.11.19 u/s 13 (2) of the SARFAESI Act.

xii) That the interest charged on the said loan is as per the stipulation made
by the RBI from time to time subject to amendment.

6. RELIEF(s) SOUGHT :
That in view of the facts mentioned in Paragraph-5 the applicant Bank
prays for the following reliefs:
 a) That a Recovery Certificate for an amount of Rs.30,69,979/- as on
31.01.20 be passed against the defendants jointly and severally in
favour of the applicant bank.

b) That an order for pendent lite and future interest at the agreed rate
applicable to the OCC availed by the defendants and as per the charge
from time to time may be passed with monthly rest till realization of
the claim amount against the defendants jointly and severally.

c) That an order be passed fixing a date and direction to all the

defendants to pay the certificate dues with interest, other costs and
charges and cost of this application.

d) That on failure to pay the certificate dues the property mortgaged as

described in the Schedule- A may be ordered to be attached and sold
and the sale proceeds be applied for partial or full satisfaction of the
certificate.

e) That in the event sale proceeds of the mortgage property belonging to

the defendants are not sufficient to cover the dues of the applicant
Bank the defendants may be held personally liable and the certificate
may be passed accordingly.

f) Any other relief the Hon’ble Tribunal may deem fit and proper in the
interest of Justice.

7. INTERIM ORDER IF PRAYED FOR:

Pending decision of this application the applicant Bank seeks issue of
the following interim orders:

a) An order of attachment be passed with a liberty to the applicant

Bank to sale the securities such as hypothecated goods and immovable
properties of the defendants.

b) And or any other order as deem fit and proper in the circumstances
of the case.

8. MATTER NOT PENDING IN ANY OTHER COURT.

 The applicant further declares that the matter regarding which this
application has been made is not pending before any court of law or
any other authority or any other Bench of the Tribunal.

9. PARTICULARS OF THE BANK DRAFTS :

i) Name of Bank on which drawn: Union Bank of India,
Purushottampur Branch,
Purushottampur.
ii) Demand Draft No.
iii)Date of Demand Draft : Dt.
iv) Amount : Rs.33,000/-

10. DETAILS OF INDEX :

And index in duplicate containing the details of the documents to be
relied upon is enclosed.

11. LIST OF ENCLOSURES :

As per Index, the applicant bank further reserves the right to produce
such other documents as required and necessary during the course of
the proceedings.

SCHEDULE – A PROPERTY
Description of property mortgaged by the Defendant No.2 Gupteswar
Pattnaik, Mouza-Nimakhandi, Dist-Ganjam, Thana-Berhampur Sadar,
Tahasil-Kukudakhandi (Previouely at Brahmapur), S.R.O-Brahmapur-I,
Khata Sl No-389, Plot No-720, area Ac 0.270dec ,vacant land.
Boundary:
North- Plot No 719, South- Plot No 942, East- Plot No 721, West- Plot No
720.

VERIFICATION
I, Sri. Prabir Kumar Swain, aged about 34 years, S/o Bhubaneswar
Swain, Branch Manager, Union Bank of India, Purushottampur Branch, Main
road, At/Po/Ps-Prusotampur, Dist-Ganjam having the valid power of attorney
of the bank do hereby verify that the contents in Paragraphs-1 to 11 are
true to the best of my knowledge and based on official records maintained in
the Branch and I have not suppressed any material facts and I sign this
verification on day of November, 2020.
Cuttack.
Date: .11.2020 Verificant.

To,
The Registrar, DRT, Cuttack

IN THE DEBTS RECOVERY TRIBUNAL, ORISSA : CUTTACK.

O. A. No. ______________ of 2020.

Union Bank of India, Purushottampur Branch, Purushottampur … Applicant.

Vrs.
M/s Bhagyalaxmi Feeds & Farms and others … Defendants.
CONCISE STSATEMENT
That the Defendants availed OCC limit of Rs.29 Lakhs with interest @ of 10.65%
(MCLR 8.4%+ 2.25%) from the applicant bank vide sanction letter dt.13.07.18 for
their business against hypothecation of stocks and Book Debts and co-lateral
security of Schedule-A property for creation of equitable mortgage by executing
necessary documents in favour of the bank for repayment of loan, but the
defendants did not pay the dues of the bank and the said loan was classified as NPA
on 28.10.19. That on default and due irregularity by the defendants with regard to
the said loan, the applicant bank issued demand notice dt.02.11.19 u/s 13 (2)
SARFAESI Act to an outstanding amount of Rs.29,66,408/- as on 02.11.19 with
subsequent interest as per the agreement within 60 days from the date of the
notice failing which the bank will be constrained to take measures against the
properties mortgaged to the bank described in Schedule-A as provided under the
SARFAESI Act, but in-spite of the said notice the defendants did not pay the dues of
the Bank. That the applicant bank has filed this original application for recovery of
loan from the defendants. This application has been filed after due calculation of the
interest as admissible from the defendants as on 31.01.20 which comes to
Rs.30,69,979/- followed with P.I and F.I and cost which the defendants are liable to
pay jointly and severally.
By the Applicant through
Cuttack.
Date: .11.2020 Advocate.
 IN THE DEBTS RECOVERY TRIBUNAL, ORISSA : CUTTACK.

O. A. No. ______________ of 2016.

Union Bank of India, Purushottampur Branch, Purushottampur… Applicant.

Vrs.
M/s Bhagyalaxmi Feeds & Farms and others … Defendants.
GENERAL INDEX
Sl.No. Description of documents. Pages.
1. Concise statement.
2. Original Application 1 - 11
3. Index of documents.
ANNEXURES
1. Application of the defendant dt.11.04.17 12 - 16

2. Sanction letter dt.13.7.18. 17 – 20

3. DPN RF 211 dt.15.04.17

4. Composite Agreement dt. 12.7.18. 22 - 38

5. Series. RF 255 dt.12.7.18,

Sale Deed No.10611501942 dt.10.04.15,
RF 256 dt. 15.04.17, RF 256 dt. 12.7.18 42 - 65

6. Notice u/s 13 (2) of SRFAESI Act dt.02.11.19. 98 - 99

7. Statement of account. 101– 116

(Certificate in term of Section 2A)

7. Vakalatnama.

Cuttack.
Date: .3.2020 Signature of the Applicant.

IN THE DEBTS RECOVERY TRIBUNAL, ORISSA : CUTTACK.

O. A. No. ______________ of 2020.

Union Bank of India, Purushottampur Branch, Purushottampur …Applicant.

Vrs.
M/s Bhagyalaxmi Feeds & Farms and others … Defendants.
LIST OF ORIGINAL DOCUMENTS FILED ON BEHALF OF THE APPLICANT
BANK

Annexures Description of documents. Sheets.

1. Application of the defendant dt.11.04.17

2. Sanction letter dt.13.7.18.

3. DPN RF 211 dt.15.04.17

4. Composite Agreement dt. 12.7.18.

5. Series. RF 255 dt.12.7.18,

Sale Deed No.10611501942 dt.10.04.15,
RF 256 dt. 15.04.17, RF 256 dt. 12.7.18
6. Notice u/s 13 (2) of SRFAESI Act dt.02.11.19.

7. Statement of account.
__________________________________________________________
Total Sheets 85

Cuttack.
Date: .11.2020 Signature of the Applicant.